The Secret to Digital Transformation is Not Clean Data...It's People
Shocker, I know, but having recently moderated panels on digital transformation in the data and procurement space, one thing is clear: people drive the success of a digital transformation project. Not clean data or technology.
Yet people are often the last factor to be addressed, or they may be considered just before data cleaning. We’ll typically see organizations decide on the technology before engaging with users and stakeholders about their needs and wants. It’s all too common to follow industry trends and what competitors are doing or believe the myth that Tool X will solve all your data problems while forgetting about the people who will be using that new technology.
The value of talking to stakeholders first can’t be overstated – leaders may well uncover a different reality. It might be that a dedicated tool isn’t even needed. (Of course, if it were as easy as that, we’d all be doing it, right?)
We hear a lot about digital transformation projects being abandoned after spending millions, either because of data issues or because staff do not adopt the technology because it is not fit for purpose. Earlier engagement with stakeholders can reduce the likelihood of this happening.
The Problem with Change
Digital transformation or not, it’s tough to get people to adopt and embrace change. One of the reasons for this is that we each accept change at a different pace. The type of change is also a factor. For example, I love self-appointed change; I can be spontaneous and love to switch things up but on my terms. If change is forced upon me, I’m not so welcoming.
Change happens all the time in business, and I’m used to that; it’s part of being a business owner. However, if I take the situation where I was forced to move out of the flat I loved because the landlord wanted to sell, I was not so embracing of that change.
The impact of any change is important, so we should consider how the proposed digital transformation will affect the users who are involved. Does it mean learning a completely new tool? Some people can do that quickly; for others, it can take time. However, by engaging stakeholders at the beginning of the project, everyone benefits. Not only could you anticipate potential hurdles, but users can help you identify performance gaps in the tools or mismatches in requirements – before the project starts.
What Can We Do to Help Make Digital Transformation a Success?
The most important thing you can do is to start with the end in mind. What is the end goal for your digital transformation project? Not just the “right now” but the longer term. What do you need from your data that can be put in place for use at a later date? An example might be the supplier information required to set up an account. Right now, you might just need a name, address and email, but what about Tax ID/VAT and DUNS number? You might need this information in the future, and rather than pay for that information down the line, why not collect it when the supplier is being set up?
The same goes for a taxonomy. You might currently have limited detail in your invoice data but may need to collect comprehensive line item information in the future. If you have a simple Level 1 or 2 taxonomy, you can’t use this to classify future new information in depth. However, build this into the taxonomy now, and you won’t need to rebuild and reclassify the data at a later stage.
So What?
Get engagement, feedback, and involvement from key users from the start of your digital transformation project. Shortcut this step at your peril. Imposing a new system, process, or technology on your users at the implementation stage could leave you with adoption challenges, resentment, or even opposition. The worst-case result? Project sabotage, wasted time, and a huge bill with very little to show for it. And who wants that?
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